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WFH Tax Relief Is Being ABOLISHED for Employees from April 2026 — Act Now
6 min read
The Approved Mileage Allowance Payment (AMAP) rate — the HMRC-set maximum you can receive from your employer tax-free for using your own car for work — has risen to 55p per mile for the first 10,000 business miles in 2026. This is an increase from the previous 45p that had been unchanged since 2011.
The New 2026 Approved Mileage Rates
| Vehicle Type | First 10,000 miles | Over 10,000 miles |
|---|---|---|
| Car or van | 55p/mile | 25p/mile |
| Motorcycle | 24p/mile | 24p/mile |
| Bicycle | 20p/mile | 20p/mile |
Claiming the Shortfall from HMRC
If your employer pays you less than the approved rate (e.g., 30p/mile), the difference (25p/mile at the 55p rate) is "Mileage Allowance Relief" — a tax deduction you can claim from HMRC. On 5,000 business miles where your employer pays 30p, you're owed relief on 5,000 × 25p = £1,250. At 20% tax, that's a £250 refund for that year.
Electric Car Mileage Rate
For company-owned EVs (where the employer pays the electricity), the rate for employees to be reimbursed for business mileage is 7p/mile in 2026. For personally owned EVs used for work, the full 55p/mile approved rate applies — important because EV owners often assume the advisory electric rate applies to their personally owned vehicle.
How to Claim Mileage Relief
- PAYE workers: Claim through gov.uk/claim-tax-relief-for-your-job-expenses or include in Self Assessment
- Self-employed: Claim as a deduction on your Self Assessment return — you don't need receipts, just a mileage log
- Backdating: Claims can go back 4 tax years
Frequently Asked Questions
Does the 55p rate apply if my employer provides a fuel card?
No. If your employer provides fuel directly, a company fuel card, or pays for fuel through a different reimbursement mechanism, the AMAP structure doesn't apply. The 55p rate is specifically for situations where you use your own vehicle and pay your own fuel costs.
Can I claim mileage for commuting?
No. Commuting (regular travel between home and your permanent workplace) is not an allowable business expense. Only travel to temporary workplaces or business-related journeys (client visits, meetings away from your usual workplace) qualify.
Calculate your mileage relief claim with our Mileage Allowance Relief Calculator.